MSCI drops two Indonesian stocks from flagship Global Standard Index
MSCI Inc., a global index provider, has announced the removal of two Indonesian stocks, PT Charoen Pokphand Indonesia Tbk (CPIN) and PT GoTo Gojek Tokopedia Tbk (GOTO), from its flagship MSCI Global Standard Index as part of its August 2026 index review. The decision follows a broader rebalance that resulted in nine Indonesian stocks remaining in the index. Additionally, CPIN was moved to the MSCI Global Small Cap Index, while several other Indonesian stocks were removed from this smaller index. The changes will take effect on September 1, 2026, after being implemented at market close on August 31, 2026. MSCI previously acknowledged Indonesia’s transparency reforms by the Financial Services Authority (OJK), the Indonesia Stock Exchange (IDX), and the Central Securities Depository (KSEI), which aimed to improve shareholder disclosure and governance standards.
MSCI Inc., a leading global index provider, announced on Wednesday (August 12, 2026) the results of its August 2026 index review, which included the removal of two Indonesian stocks from its flagship MSCI Global Standard Index. The affected companies are PT Charoen Pokphand Indonesia Tbk (CPIN), a major player in the poultry sector, and PT GoTo Gojek Tokopedia Tbk (GOTO), a prominent technology conglomerate. These changes mark a notable shift in the composition of the index, which tracks large-cap stocks globally. No new Indonesian equities were added to replace the two removed, leaving nine local stocks remaining in the MSCI Global Standard Index. The nine stocks retained in the MSCI Global Standard Index include PT Astra International Tbk (ASII), PT Bank Central Asia Tbk (BBCA), PT Bank Negara Indonesia (Persero) Tbk (BBNI), PT Bank Rakyat Indonesia (Persero) Tbk (BBRI), PT Bank Mandiri (Persero) Tbk (BMRI), PT Bumi Resources Minerals Tbk (BRMS), PT Barito Pacific Tbk (BRPT), PT Telkom Indonesia (Persero) Tbk (TLKM), and PT United Tractors Tbk (UNTR). These firms represent key sectors such as banking, telecommunications, mining, and manufacturing. In addition to the changes in the Global Standard Index, MSCI adjusted the MSCI Global Small Cap Index by adding CPIN, which had been downgraded from the standard index. However, this move came at the expense of removing several other Indonesian equities from the small-cap category. The nine stocks removed from the Small Cap list are PT Bank Jago Tbk (ARTO), PT Bukalapak Tbk (BUKA), PT Surya Esa Perkasa Tbk (ESSA), PT MD Entertainment Tbk (FILM), PT Medikaloka Hermina Tbk (HEAL), PT MNC Tourism Indonesia Tbk (KPIG), PT Raharja Energi Cepu Tbk (RATU), PT Semen Indonesia Tbk (SMGR), and PT Transcoal Pacific Tbk (TCPI). Another 33 Indonesian stocks remained unchanged in the MSCI Global Small Cap Index. There were no additions or deletions in the MSCI Micro Cap Index for Indonesia. Index adjustments will take effect at the close of trading on August 31, 2026, and will be implemented on September 1, 2026. MSCI plans to conduct its next index review on November 11, 2026, with changes set to be effective on December 1, 2026. This follows a previous Market Classification Review on June 24, during which MSCI acknowledged improvements in transparency reforms initiated by Indonesia’s Financial Services Authority (OJK), the Indonesia Stock Exchange (IDX), and the Indonesian Central Securities Depository (KSEI). These reforms included enhanced disclosure requirements for shareholders holding more than 1 percent of shares, more detailed investor classification systems, the introduction of the High Shareholders Concentration (HSC) framework, and a plan to increase the minimum free-float requirement to 15 percent. These developments reflect ongoing efforts by Indonesian authorities to align with international standards and improve market transparency. The decision by MSCI to remove certain Indonesian stocks has prompted responses from local financial institutions. The Indonesia Stock Exchange (IDX) has expressed commitment to maintaining its position as an emerging market, despite the risk of potential downgrades. Officials have emphasized the importance of continuing market reforms to meet international benchmarks. Specific statements from IDX regarding the impact of these changes were outlined in recent reports, though details remain under discussion. The implications of these index movements could affect foreign investment flows into Indonesia, as inclusion in major indices often influences portfolio allocations by global investors. Analysts suggest that the removal of CPIN and GOTO might signal concerns over their market capitalization or liquidity levels relative to other regional peers. Meanwhile, the continued presence of established firms in the Global Standard Index indicates that some segments of the Indonesian stock market still meet the criteria for inclusion in high-profile indices. MSCI’s next review in late 2026 will provide further clarity on whether recent reforms have been sufficient to prevent additional stock removals or potential broader index-level changes. Investors and policymakers alike are likely monitoring developments closely, given the significance of index classifications for both domestic markets and international perceptions of Indonesia’s financial landscape.
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